In today’s agricultural economy, both dealers and farmers are navigating a landscape filled with uncertainties. Higher interest rates, lower commodity prices, and a slowdown in equipment sales are creating challenges that impact decision making and profitability. For dealers, it’s critical to find ways to provide added value to customers, while also safeguarding your own financial stability.
Machinery Scope’s extended warranty solutions offer a strategic advantage for both parties by mitigating the risks associated with equipment ownership. For equipment owners, extended warranty coverage provides peace of mind, ensuring that they can proceed with necessary equipment purchases without fear of unexpected repair costs that could disrupt their cash flow. Knowing their investment is protected, farmers are more likely to commit to a machinery purchase, even in a volatile market. For dealerships, offering extended warranties does more than just provide an additional revenue stream—it enhances the potential for your business both long and short term.
Here’s how:
- Increase in Equipment Turns: Warranty provides buyers with the confidence to make purchases, which can lead to improved equipment turns for dealers.
- Margin Opportunities: Whether it’s through your sales department at the point of sale, or on equipment being serviced in your shop, selling extended warranties can create new profit margins for dealerships. These plans contribute to the dealership’s bottom line without the need for additional overhead.
- Preserving Margins: Rather than sending equipment to auction, let’s leverage every available tool to help close sales at the dealership that will result in better net proceeds. In addition, extended warranty helps to maintain the integrity of the original sale by reducing the need for post sale chargebacks due to potential mechanical failures. With warranty in place, the risk of post sale issues are minimized, ensuring that the dealership’s initial margin on the sale remains intact.
- Aftermarket Revenue: Our Machinery Scope extended warranty plans are serviced within our authorized OEM dealer network, ensuring the best interest of all parties involved in a potential claim, and providing parts and service revenue to the dealership. Additionally, sales going through your dealership also lead to a higher likelihood of aftermarket revenue opportunities for the dealership.
Machinery Scope’s extended warranty solutions offer farmers the security to invest in updating equipment and provide dealers with a tool to enhance profitability and operational efficiency. By incorporating this into your sales strategy, you’re supporting your customers through challenging times and adding revenue opportunities for your dealership.
